UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-21905
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First Trust/Aberdeen Emerging Opportunity Fund
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(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
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Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Name and address of agent for service)
Registrant's telephone number, including area code: (630) 765-8000
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Date of fiscal year end: December 31
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Date of reporting period: September 30, 2016
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached
herewith.
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a)
SEPTEMBER 30, 2016 (UNAUDITED)
SHARES DESCRIPTION VALUE
------------------ -------------------------------------------------------------------------- -------------
COMMON STOCKS - 42.7%
BRAZIL - 4.8%
68,000 Ambev S.A................................................................. $ 415,467
111,056 Banco Bradesco S.A., ADR.................................................. 1,007,278
31,800 BRF S.A................................................................... 543,469
77,000 Lojas Renner S.A.......................................................... 581,735
25,454 Multiplan Empreendimentos Imobiliarios S.A., Preference Shares............ 496,690
41,267 Ultrapar Participacoes S.A................................................ 913,492
59,604 Vale S.A., ADR............................................................ 327,822
19,642 Vale S.A., Preference Shares, ADR......................................... 92,514
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4,378,467
-------------
CHILE - 0.6%
24,459 Banco Santander Chile S.A., ADR........................................... 506,057
-------------
CHINA - 1.9%
106,000 China Mobile Ltd. (b)..................................................... 1,302,143
692,000 PetroChina Co., Ltd., Class H (b)......................................... 458,698
-------------
1,760,841
-------------
HONG KONG - 3.6%
206,000 AIA Group Ltd. (b)........................................................ 1,385,297
202,000 Hang Lung Group Ltd. (b).................................................. 772,459
15,285 Hong Kong Exchanges and Clearing Ltd. (b)................................. 404,523
262,000 Swire Pacific Ltd., B Shares (b).......................................... 511,615
54,600 Swire Properties Ltd. (b)................................................. 160,588
-------------
3,234,482
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HUNGARY - 0.5%
21,000 Richter Gedeon Nyrt (b)................................................... 426,774
-------------
INDIA - 7.1%
12,202 Grasim Industries Ltd. (b)................................................ 886,999
11,000 Hero MotoCorp Ltd. (b).................................................... 565,167
43,000 Hindustan Unilever Ltd. (b)............................................... 561,013
72,500 Housing Development Finance Corp., Ltd. (b)............................... 1,520,688
163,000 ICICI Bank Ltd. (b)....................................................... 615,689
40,075 Infosys Ltd. (b).......................................................... 623,256
276,259 ITC Ltd. (b).............................................................. 1,002,505
9,253 Tata Consultancy Services Ltd. (b)........................................ 338,152
5,428 UltraTech Cement Ltd. (b)................................................. 314,316
-------------
6,427,785
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INDONESIA - 2.2%
2,268,100 Astra International Tbk PT (b)............................................ 1,439,164
423,400 Indocement Tunggal Prakarsa Tbk PT (b).................................... 564,509
-------------
2,003,673
-------------
ITALY - 0.6%
17,900 Tenaris S.A., ADR......................................................... 508,360
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MALAYSIA - 0.8%
170,542 CIMB Group Holdings Bhd (b)............................................... 194,628
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
SHARES DESCRIPTION VALUE
------------------ -------------------------------------------------------------------------- -------------
COMMON STOCKS (CONTINUED)
MALAYSIA (CONTINUED)
105,000 Public Bank Bhd (b)....................................................... $ 503,471
-------------
698,099
-------------
MEXICO - 3.5%
13,700 Fomento Economico Mexicano, S.A.B. de C.V., ADR........................... 1,260,948
16,500 Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., ADR................. 776,490
211,200 Grupo Financiero Banorte, S.A.B. de C.V., O Shares........................ 1,108,732
-------------
3,146,170
-------------
PHILIPPINES - 1.8%
1,189,000 Ayala Land, Inc. (b)...................................................... 967,741
325,359 Bank of the Philippine Islands (b)........................................ 704,820
-------------
1,672,561
-------------
POLAND - 1.2%
16,196 Bank Pekao S.A. (b)....................................................... 524,384
29,692 Jeronimo Martins SGPS S.A. (b)............................................ 514,613
-------------
1,038,997
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RUSSIA - 1.8%
17,500 Lukoil PJSC, ADR.......................................................... 852,775
4,796 Magnit PJSC (b)........................................................... 793,980
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1,646,755
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SOUTH AFRICA - 2.1%
18,000 BHP Billiton PLC (b)...................................................... 271,253
43,910 Massmart Holdings Ltd..................................................... 379,855
44,215 MTN Group Ltd. (b)........................................................ 379,048
6,966 SABMiller PLC (b)......................................................... 402,046
98,163 Truworths International Ltd. (b).......................................... 508,756
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1,940,958
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SOUTH KOREA - 2.8%
78 Amorepacific Corp., Preference Shares (b)................................. 15,066
107 Amorepacific Group (b).................................................... 16,166
1,683 E-MART, Inc. (b).......................................................... 241,482
533 NAVER Corp. (b)........................................................... 429,099
1,600 Samsung Electronics Co., Ltd., Preference Shares (b)...................... 1,879,682
-------------
2,581,495
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TAIWAN - 2.1%
108,005 Taiwan Mobile Co., Ltd. (b)............................................... 388,333
262,954 Taiwan Semiconductor Manufacturing Co., Ltd. (b).......................... 1,545,681
-------------
1,934,014
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THAILAND - 2.1%
67,200 Siam Cement (The) PCL (b)................................................. 1,007,028
210,100 Siam Commercial Bank (The) PCL (b)........................................ 901,652
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1,908,680
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See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
SHARES DESCRIPTION VALUE
------------------ -------------------------------------------------------------------------- -------------
COMMON STOCKS (CONTINUED)
TURKEY - 2.0%
188,635 Akbank TAS (b)............................................................ $ 505,340
32,444 BIM Birlesik Magazalar A.S. (b)........................................... 541,195
87,150 Haci Omer Sabanci Holding A.S. (b)........................................ 269,613
192,000 Turkiye Garanti Bankasi A.S. (b).......................................... 508,765
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1,824,913
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UNITED KINGDOM - 0.5%
57,039 Standard Chartered PLC (b)................................................ 464,167
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UNITED STATES - 0.7%
6,500 Yum! Brands, Inc.......................................................... 590,265
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TOTAL COMMON STOCKS....................................................... 38,693,513
(Cost $30,648,121) -------------
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
------------------ ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES - 41.9%
ARGENTINA - 2.4%
816,000 Argentine Republic Government
International Bond (USD) (c).......... 7.50% 04/22/26 922,488
378,550 Argentine Republic Government
International Bond (USD).............. 8.28% 12/31/33 436,279
266,387 Argentine Republic Government
International Bond (USD).............. 8.28% 12/31/33 299,020
464,000 Argentine Republic Government
International Bond (USD) (c).......... 7.13% 07/06/36 492,536
-------------
2,150,323
-------------
ARMENIA - 0.4%
396,000 Republic of Armenia International Bond
(USD) (c)............................. 6.00% 09/30/20 411,424
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BRAZIL - 4.5%
14,400,000 Brazil Notas do Tesouro Nacional,
Series F (BRL)........................ 10.00% 01/01/25 4,098,372
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COSTA RICA - 0.3%
300,000 Costa Rica Government International Bond
(USD)................................. 4.25% 01/26/23 296,250
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ECUADOR - 0.5%
423,000 Ecuador Government International Bond
(USD) (c)............................. 10.75% 03/28/22 432,517
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ETHIOPIA - 0.9%
790,000 Ethiopia International Bond (USD) (c).... 6.63% 12/11/24 782,100
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GHANA - 0.8%
1,850,000 Ghana Government Bond (GHS) ............. 23.00% 08/21/17 468,550
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
------------------ ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
GHANA (CONTINUED)
300,000 Ghana Government International Bond (USD) 8.13% 01/18/26 $ 279,981
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748,531
-------------
HONDURAS - 0.5%
410,000 Honduras Government International Bond
(USD) (c)............................. 7.50% 03/15/24 467,400
-------------
HUNGARY - 1.4%
276,800,000 Hungary Government Bond (HUF) ........... 5.50% 06/24/25 1,228,332
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INDONESIA - 2.6%
470,000 Indonesia Government International Bond
(USD) (c)............................. 5.88% 01/15/24 555,431
7,600,000,000 Indonesia Treasury Bond (IDR) ........... 5.25% 05/15/18 570,684
14,700,000,000 Indonesia Treasury Bond (IDR) ........... 8.38% 03/15/34 1,231,101
-------------
2,357,216
-------------
IRAQ - 0.8%
880,000 Iraq International Bond (USD) ........... 5.80% 01/15/28 719,066
-------------
IVORY COAST - 0.7%
693,000 Ivory Coast Government International
Bond (USD)............................ 5.75% 12/31/32 683,194
-------------
JAMAICA - 0.6%
477,000 Jamaica Government International Bond
(USD)................................. 7.88% 07/28/45 562,860
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KENYA - 0.2%
200,000 Kenya Government International Bond
(USD)................................. 6.88% 06/24/24 197,009
-------------
MEXICO - 1.5%
3,850,000 Mexican Bonos (MXN) ..................... 6.50% 06/09/22 205,305
18,700,000 Mexican Bonos (MXN) ..................... 8.50% 11/18/38 1,191,678
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1,396,983
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MONGOLIA - 0.7%
700,000 Mongolia Government International Bond
(USD)................................. 5.13% 12/05/22 617,781
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PERU - 2.2%
6,320,000 Peruvian Government International Bond
(PEN)................................. 6.90% 08/12/37 2,024,535
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POLAND - 3.3%
4,050,000 Republic of Poland Government Bond
(PLN)................................. 4.75% 04/25/17 1,078,298
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
------------------ ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
POLAND (CONTINUED)
6,900,000 Republic of Poland Government Bond
(PLN)................................. 4.00% 10/25/23 $ 1,960,435
-------------
3,038,733
-------------
RUSSIA - 4.9%
281,300,000 Russian Federal Bond - OFZ (RUB) ........ 7.05% 01/19/28 4,176,218
200,000 Russian Foreign Bond - Eurobond (USD) ... 5.88% 09/16/43 239,334
-------------
4,415,552
-------------
RWANDA - 0.6%
200,000 Rwanda International Government Bond
(USD) (c)............................. 6.63% 05/02/23 202,800
300,000 Rwanda International Government Bond
(USD)................................. 6.63% 05/02/23 304,200
-------------
507,000
-------------
SENEGAL - 0.5%
380,000 Senegal Government International Bond
(USD)................................. 8.75% 05/13/21 433,242
-------------
SOUTH AFRICA - 3.9%
14,400,000 Republic of South Africa Government
Bond (ZAR)............................ 10.50% 12/21/26 1,177,920
10,260,000 Republic of South Africa Government
Bond (ZAR)............................ 8.00% 01/31/30 688,642
31,500,000 Republic of South Africa Government
Bond (ZAR)............................ 6.25% 03/31/36 1,678,814
-------------
3,545,376
-------------
TANZANIA - 0.3%
233,334 Tanzania Government International Bond
(USD) (d)............................. 7.25% 03/09/20 244,417
-------------
TURKEY - 4.4%
1,750,000 Turkey Government Bond (TRY) ............ 6.30% 02/14/18 568,741
5,390,000 Turkey Government Bond (TRY) ............ 10.40% 03/20/24 1,888,979
1,800,000 Turkey Government Bond (TRY) ............ 8.00% 03/12/25 550,530
500,000 Turkey Government International Bond
(USD)................................. 5.75% 03/22/24 539,550
400,000 Turkey Government International Bond
(USD)................................. 4.88% 10/09/26 408,048
-------------
3,955,848
-------------
UKRAINE - 1.4%
297,000 Ukraine Government International Bond
(USD) (c)............................. 7.75% 09/01/20 290,971
115,000 Ukraine Government International Bond
(USD) (c)............................. 7.75% 09/01/21 112,125
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
------------------ ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
UKRAINE (CONTINUED)
865,000 Ukraine Government International Bond
(USD) (c)............................. 7.75% 09/01/24 $ 829,202
188,000 Ukraine Government International Bond
(USD) (c)............................. 0.00% 05/31/40 60,918
-------------
1,293,216
-------------
URUGUAY - 0.5%
190,000 Uruguay Government International Bond
(USD)................................. 4.38% 10/27/27 205,438
158,000 Uruguay Government International Bond
(USD)................................. 7.63% 03/21/36 223,570
-------------
429,008
-------------
VENEZUELA - 0.6%
850,000 Venezuela Government International Bond
(USD)................................. 7.75% 10/13/19 526,575
-------------
ZAMBIA - 0.5%
440,000 Zambia Government International Bond
(USD) (c)............................. 8.97% 07/30/27 436,150
-------------
TOTAL FOREIGN SOVEREIGN BONDS AND NOTES................................ 37,999,010
(Cost $37,026,808) -------------
FOREIGN CORPORATE BONDS AND NOTES (e) - 18.8%
AZERBAIJAN - 0.5%
422,000 Southern Gas Corridor CJSC (USD) (c)..... 6.88% 03/24/26 473,864
-------------
BANGLADESH - 0.3%
250,000 Banglalink Digital Communications Ltd.
(USD) (c)............................. 8.63% 05/06/19 267,500
-------------
BARBADOS - 0.3%
250,000 Sagicor Finance 2015 Ltd. (USD) (c)...... 8.88% 08/11/22 286,375
-------------
BRAZIL - 3.1%
414,000 Marfrig Overseas Ltd. (USD) ............. 9.50% 05/04/20 428,490
350,000 OAS Finance Ltd. (USD) (f) (g) (h) (i)... 8.88% (j) 17,500
200,000 OAS Investments GmbH (USD) (f) (g) (i)... 8.25% 10/19/19 11,000
170,000 Petrobras Global Finance BV (USD) ....... 8.38% 05/23/21 186,150
795,000 Petrobras Global Finance BV (USD) ....... 5.38% 01/27/21 788,242
650,000 Petrobras Global Finance BV (USD) ....... 8.75% 05/23/26 719,875
356,872 QGOG Atlantic/Alaskan Rigs Ltd. (USD) ... 5.25% 07/30/18 310,479
300,000 Vale Overseas Ltd. (USD) ................ 6.88% 11/21/36 293,100
-------------
2,754,836
-------------
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
------------------ ----------------------------------------- -------------- --------------- -------------
FOREIGN CORPORATE BONDS AND NOTES (e) (CONTINUED)
DOMINICAN REPUBLIC - 0.6%
460,000 AES Andres BV / Domincan Power
Partners / Empresa Generadora de
Electricidad Itabo (USD) (c).......... 7.95% 05/11/26 491,625
-------------
GEORGIA - 1.5%
200,000 BGEO Group JSC (USD) (c) ................ 6.00% 07/26/23 207,500
350,000 Georgian Oil and Gas Corp. JSC
(USD) (c)............................. 6.75% 04/26/21 369,250
680,000 Georgian Railway JSC (USD) .............. 7.75% 07/11/22 772,395
-------------
1,349,145
-------------
GUATEMALA - 1.1%
400,000 Comcel Trust via Comunicaciones
Celulares S.A. (USD) (c).............. 6.88% 02/06/24 413,280
500,000 Industrial Subordinated Trust (USD) ..... 8.25% 07/27/21 537,500
-------------
950,780
-------------
HONG KONG - 0.3%
260,000 Shimao Property Holdings Ltd. (USD) ..... 8.38% 02/10/22 297,394
-------------
INDIA - 0.3%
260,000 ICICI Bank Ltd. (USD) (h)................ 6.38% 04/30/22 265,506
-------------
INDONESIA - 0.7%
640,000 Pertamina Persero PT (USD) (c)........... 4.30% 05/20/23 672,861
-------------
KAZAKHSTAN - 1.7%
480,000 KazMunayGas National Co., JSC (USD) ..... 9.13% 07/02/18 531,014
308,000 Tengizchevroil Finance Co., International
Ltd. (USD) (c)........................ 4.00% 08/15/26 305,536
800,000 Zhaikmunai LLP (USD) (c)................. 7.13% 11/13/19 742,000
-------------
1,578,550
-------------
MEXICO - 2.1%
270,000 Alfa SAB de CV (USD) .................... 6.88% 03/25/44 286,875
430,000 Cemex SAB de CV (USD) (c)................ 7.75% 04/16/26 478,160
4,800,000 Petroleos Mexicanos (MXN) ............... 7.19% 09/12/24 229,253
400,000 Sixsigma Networks Mexico S.A. de CV
(USD) (c)............................. 8.25% 11/07/21 394,000
520,000 Unifin Financiera SAB de CV SOFOM ENR
(USD) (c)............................. 7.25% 09/27/23 520,468
-------------
1,908,756
-------------
NETHERLANDS - 0.2%
200,000 GTH Finance BV (USD) (c)................. 7.25% 04/26/23 217,560
-------------
NIGERIA - 0.4%
400,000 Zenith Bank PLC (USD) (c)................ 6.25% 04/22/19 390,808
-------------
PARAGUAY - 0.4%
350,000 Banco Regional SAECA (USD) (c)........... 8.13% 01/24/19 378,000
-------------
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
------------------ ----------------------------------------- -------------- --------------- -------------
FOREIGN CORPORATE BONDS AND NOTES (e) (CONTINUED)
PERU - 0.2%
200,000 Union Andina de Cementos SAA (USD) ...... 5.88% 10/30/21 $ 210,480
-------------
RUSSIA - 1.7%
430,000 Evraz Group S.A. (USD) (c)............... 6.50% 04/22/20 446,125
338,000 Global Ports Finance PLC (USD) (c)....... 6.87% 01/25/22 353,210
350,000 Lukoil International Finance BV (USD) ... 4.56% 04/24/23 363,346
310,000 Sberbank of Russia Via SB Capital S.A.
(USD)................................. 6.13% 02/07/22 342,525
-------------
1,505,206
-------------
SOUTH AFRICA - 1.8%
710,000 Eskom Holdings SOC Ltd. (USD) (c)........ 6.75% 08/06/23 731,719
860,000 Eskom Holdings SOC Ltd. (USD) ........... 7.13% 02/11/25 886,737
-------------
1,618,456
-------------
TURKEY - 0.6%
200,000 Arcelik AS (USD) (c)..................... 5.00% 04/03/23 198,266
300,000 Yasar Holdings AS (USD) (c).............. 8.88% 05/06/20 319,599
-------------
517,865
-------------
UNITED ARAB EMIRATES - 0.7%
600,000 Jafz Sukuk 2019 Ltd. (USD) .............. 7.00% 06/19/19 671,028
-------------
VENEZUELA - 0.3%
166,667 Petroleos de Venezuela S.A. (USD) ....... 8.50% 11/02/17 143,500
270,000 Petroleos de Venezuela S.A. (USD) ....... 9.00% 11/17/21 154,102
-------------
297,602
-------------
TOTAL FOREIGN CORPORATE BONDS AND NOTES................................... 17,104,197
(Cost $16,675,821) -------------
TOTAL INVESTMENTS - 103.4%................................................ 93,796,720
(Cost $84,350,750) (k)
OUTSTANDING LOANS - (6.4%)................................................ (5,800,000)
NET OTHER ASSETS AND LIABILITIES - 3.0%................................... 2,690,914
-------------
NET ASSETS - 100.0%....................................................... $ 90,687,634
=============
-----------------------------
(a) All of these securities are available to serve as collateral for the
outstanding loans.
(b) This security is fair valued by the Advisor's Pricing Committee in
accordance with procedures adopted by the Fund's Board of Trustees and in
accordance with provisions of the Investment Company Act of 1940, as
amended. At September 30, 2016, securities noted as such are valued at
$28,331,564 or 31.2% of net assets. Certain of these securities are fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the NYSE close
exceeding a certain threshold. On days when this threshold is not
exceeded, these securities are typically valued at the last sale price on
the exchange on which they are principally traded.
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
(c) This security, sold within the terms of a private placement memorandum, is
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended (the "1933 Act"), and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. Pursuant to
procedures adopted by the Fund's Board of Trustees, this security has been
determined to be liquid by Aberdeen Asset Management Inc., the Fund's
investment sub-advisor. Although market instability can result in periods
of increased overall market illiquidity, liquidity for each security is
determined based on security specific factors and assumptions, which
require subjective judgement. At September 30, 2016 , securities noted as
such amounted to $14,653,768 or 16.2% of net assets.
(d) Floating rate security. The interest rate shown reflects the rate in
effect at September 30, 2016.
(e) Portfolio securities are included in a country based upon their underlying
credit exposure as determined by Aberdeen Asset Management Inc., the
Fund's investment sub-advisor.
(f) This issuer is in default and interest is not being accrued by the Fund
nor paid by the issuer.
(g) This issuer has filed for bankruptcy protection in a Sao Paulo state
court.
(h) Fixed-to-floating or fixed-to-variable rate security. The interest rate
shown reflects the fixed rate in effect at September 30, 2016. At a
predetermined date, the fixed rate will change to a floating rate or a
variable rate.
(i) This security, sold within the terms of a private placement memorandum, is
exempt from registration upon resale under Rule 144A of the 1933 Act, and
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. (see Note 2E - Restricted Securities in
the Notes to Portfolio of Investments).
(j) Perpetual maturity.
(k) Aggregate cost for financial reporting purposes, which approximates the
aggregate cost for federal income tax purposes. As of September 30, 2016,
the aggregate gross unrealized appreciation for all securities in which
there was an excess of value over tax cost was $15,055,259 and the
aggregate gross unrealized depreciation for all securities in which there
was an excess of tax cost over value was $5,609,289.
ADR American Depositary Receipt
Currency Abbreviations
ARS Argentine Peso
BRL Brazilian Real
EUR Euro
GBP British Pound Sterling
GHS Ghanaian Cedi
HKD Hong Kong Dollar
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
KRW South Korean Won
MXN Mexican Peso
MYR Malaysian Ringgit
PEN Peruvian New Sol
PHP Philippines Peso
PLN Polish Zloty
RUB Russian Ruble
THB Thailand Baht
TRY Turkish Lira
TWD Taiwan New Dollar
USD United States Dollar
ZAR South African Rand
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of September 30,
2016 is as follows (see Note 2A - Portfolio Valuation in the Notes to Portfolio
of Investments):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
3/31/2016 PRICES INPUTS INPUTS
--------------- ------------- --------------- --------------
Common Stocks:
Brazil.................................... $ 4,378,467 $ 4,378,467 $ -- $ --
Chile..................................... 506,057 506,057 -- --
Italy..................................... 508,360 508,360 -- --
Mexico.................................... 3,146,170 3,146,170 -- --
Russia.................................... 1,646,755 852,775 793,980 --
South Africa.............................. 1,940,958 379,855 1,561,103 --
United States............................. 590,265 590,265 -- --
Other Country Categories*................. 25,976,481 -- 25,976,481 --
--------------- ------------- --------------- --------------
Total Common Stocks.................... 38,693,513 10,361,949 28,331,564 --
--------------- ------------- --------------- --------------
Foreign Sovereign Bonds and Notes*............ 37,999,010 -- 37,999,010 --
Foreign Corporate Bonds and Notes*............ 17,104,197 -- 17,104,197 --
--------------- ------------- --------------- --------------
Total Investments............................. $ 93,796,720 $ 10,361,949 $ 83,434,771 $ --
--------------- ------------- --------------- --------------
Forward Foreign Currency Contracts**.......... 54,009 -- 54,009 --
--------------- ------------- --------------- --------------
Total......................................... $ 93,850,729 $ -- $ 83,488,780 $ --
=============== ============= =============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
3/31/2016 PRICES INPUTS INPUTS
--------------- ------------- --------------- --------------
Forward Foreign Currency Contracts**.......... $ (107,477) $ -- $ (107,477) $ --
=============== ============= =============== ==============
* See Portfolio of Investments for country breakout.
** See the Forward Foreign Currency Contracts table for contract and currency
detail.
All transfers in and out of the Levels during the period are assumed to be
transferred on the last day of the period at their current value. As of
September 30, 2016, the Fund transferred common stocks valued at $379,855 from
Level 2 to Level 1 of the fair value hierarchy. The common stocks that
transferred from Level 2 to Level 1 did so as a result of being valued based on
quoted prices at September 30, 2016. Previously, these common stocks were fair
valued using a factor provided by a third-party pricing service due to the
change in value between the foreign markets' close and the New York Stock
Exchange close on December 31, 2015 exceeding a certain threshold.
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
------------------------------------------------------------
% OF TOTAL
INDUSTRY CLASSIFICATION INVESTMENTS
------------------------------------------------------------
Sovereigns 40.5%
Banks 10.3
Real Estate Management & Development 3.1
Construction Materials 3.0
Government Agencies 3.0
Integrated Oils 2.8
Wireless Telecommunications Services 2.7
Food & Staples Retailing 2.6
Oil, Gas & Consumable Fuels 2.4
Beverages 2.2
Automobiles 2.1
Technology Hardware, Storage & Peripherals 2.0
Semiconductors 1.7
Thrifts & Mortgage Finance 1.6
Insurance 1.5
Metals & Mining 1.5
Exploration & Production 1.1
Tobacco 1.1
IT Services 1.0
Real Estate 1.0
Financial Services 0.9
Pipeline 0.9
Food & Beverage 0.8
Railroad 0.8
Transportation Infrastructure 0.8
Construction Materials Manufacturing 0.7
Food Products 0.6
Hotels, Restaurants & Leisure 0.6
Household Products 0.6
Multiline Retail 0.6
Specialty Retail 0.6
Energy Equipment & Services 0.6
Internet Software & Services 0.5
Pharmaceuticals 0.5
Utilities 0.5
Wireline Telecommunications Services 0.5
Capital Markets 0.4
Software & Services 0.4
Transportation & Logistics 0.4
Chemicals 0.3
Diversified Financial Services 0.3
Oil & Gas Services & Equipment 0.3
Home Improvement 0.2
Industrial Other 0.0*
Personal Products 0.0*
---------------------------------------------------------
Total 100.0%
======
* Amount is less than 0.1%
--------------------------------------------------
CURRENCY EXPOSURE % OF TOTAL
DIVERSIFICATION INVESTMENTS #
--------------------------------------------------
USD 38.5%
BRL 7.5
INR 7.4
HKD 5.3
RUB 5.3
TRY 5.2
IDR 4.1
ZAR 4.0
PLN 3.8
MXN 2.9
KRW 2.7
PEN 2.2
TWD 2.1
THB 2.0
HUF 1.8
PHP 1.8
ARS 1.2
MYR 0.7
EUR 0.5
GBP 0.5
GHS 0.5
----------------------------------------------
Total 100.0%
======
# The weightings include the impact of currency forwards.
--------------------------------------------------
% OF TOTAL
FIXED INCOME
CREDIT QUALITY(1) INVESTMENTS
--------------------------------------------------
A 8.5%
A- 3.6
BBB+ 2.1
BBB 7.4
BBB- 26.2
BB+ 6.9
BB 12.6
BB- 6.5
B+ 9.1
B 9.2
B- 3.8
CCC 1.5
Not Rated 2.6
----------------------------------------------
Total 100.0%
======
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
PORTFOLIO OF INVESTMENTS (a) (Continued)
SEPTEMBER 30, 2016 (UNAUDITED)
(1) The credit quality and ratings information presented above reflects the
ratings assigned by one or more nationally recognized statistical rating
organizations (NRSROs), including Standard & Poor's Ratings Group, a
division of the McGraw-Hill Companies, Inc., Moody's Investors Service,
Inc., Fitch Ratings or a comparably rated NRSRO. For situations in which a
security is rated by more than one NRSRO and the ratings are not
equivalent, the highest ratings are used. The credit ratings shown relate
to the credit worthiness of the issuers of the underlying securities in
the Fund, and not to the Fund or its shares. Credit ratings are subject to
change.
FORWARD FOREIGN CURRENCY CONTRACTS (SEE NOTE 2C - FORWARD FOREIGN CURRENCY
CONTRACTS IN THE NOTES TO PORTFOLIO OF INVESTMENTS):
FORWARD FOREIGN CURRENCY CONTRACTS
------------------------------------------------------
PURCHASE SALE UNREALIZED
SETTLEMENT AMOUNT AMOUNT VALUE AS OF VALUE AS OF APPRECIATION/
DATE COUNTERPARTY PURCHASED (a) SOLD (a) SEPTEMBER 30, 2016 SEPTEMBER 30, 2016 (DEPRECIATION)
---------- -------------- ---------------- ---------------- ------------------ ------------------ --------------
10/17/16 JPM USD 1,763,787 MXN 33,288,000 $ 1,763,787 $ 1,713,382 $ 50,405
10/17/16 CIT MXN 33,288,000 USD 1,785,077 1,713,382 1,785,077 (71,695)
10/17/16 JPM USD 1,682,624 ZAR 23,394,000 1,682,624 1,699,277 (16,653)
11/21/16 CIT ARS 17,039,000 USD 1,099,290 1,080,161 1,099,290 (19,129)
11/23/16 CIT INR 32,218,000 USD 475,753 479,357 475,753 3,604
-------------
Net Unrealized Appreciation (Depreciation) ........................................................... $ (53,468)
=============
(a) See Portfolio of Investments for currency descriptions.
Counterparty Abbreviations:
CIT Citibank, NA
JPM JPMorgan Chase
See Notes to Portfolio of Investments
NOTES TO PORTFOLIO OF INVESTMENTS
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
SEPTEMBER 30, 2016 (UNAUDITED)
1. ORGANIZATION
First Trust/Aberdeen Emerging Opportunity Fund (the "Fund") is a diversified,
closed-end management investment company organized as a Massachusetts business
trust on May 16, 2006 and is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended (the "1940
Act"). The Fund trades under the ticker symbol FEO on the New York Stock
Exchange ("NYSE").
The Fund, which is an investment company within the scope of Financial
Accounting Standards Board ("FASB") Accounting Standards
Update 2013-08, follows accounting and reporting guidance under FASB Accounting
Standards Codification Topic 946, "Financial Services-Investment Companies."
2. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION
The net asset value ("NAV") of the Common Shares of the Fund is determined
daily, as of the close of regular trading on the NYSE, normally 4:00 p.m.
Eastern time, on each day the NYSE is open for trading. If the NYSE closes early
on a valuation day, the NAV is determined as of that time. Domestic debt
securities and foreign securities are priced using data reflecting the earlier
closing of the principal markets for those securities. The NAV per Common Share
is calculated by dividing the value of all assets of the Fund (including accrued
interest and dividends), less all liabilities (including accrued expenses,
dividends declared but unpaid and any borrowings of the Fund), by the total
number of Common Shares outstanding.
The Fund's investments are valued daily at market value or, in absence of market
value with respect to any portfolio securities, at fair value. Market value
prices represent last sale or official closing prices from a national or foreign
exchange (i.e., a regulated market) and are primarily obtained from third-party
pricing services. Fair value prices represent any prices not considered market
value prices and are either obtained from a third-party pricing service or are
determined by the Pricing Committee of the Fund's investment advisor, First
Trust Advisors L.P.'s ("First Trust" or the "Advisor"), in accordance with
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with provisions of the 1940 Act. Investments valued by the Advisor's Pricing
Committee, if any, are footnoted as such in the footnotes to the Portfolio of
Investments. The Fund's investments are valued as follows:
Corporate bonds, corporate notes and other debt securities are valued on
the basis of valuations provided by dealers who make markets in such
securities or by a third-party pricing service approved by the Fund's
Board of Trustees, which may use the following valuation inputs when
available:
1) benchmark yields;
2) reported trades;
3) broker/dealer quotes;
4) issuer spreads;
5) benchmark securities;
6) bids and offers; and
7) reference data including market research publications.
Fixed income and other debt securities having a remaining maturity of
sixty days or less when purchased are fair valued at cost adjusted for
amortization of premiums and accretion of discounts (amortized cost),
provided the Advisor's Pricing Committee has determined that the use of
amortized cost is an appropriate reflection of fair value given market and
issuer-specific conditions existing at the time of the determination.
Factors that may be considered in determining the appropriateness of the
use of amortized cost include, but are not limited to, the following:
1) the credit conditions in the relevant market and changes
thereto;
2) the liquidity conditions in the relevant market and changes
thereto;
3) the interest rate conditions in the relevant market and
changes thereto (such as significant changes in interest
rates);
4) issuer-specific conditions (such as significant credit
deterioration); and
5) any other market-based data the Advisor's Pricing Committee
considers relevant. In this regard, the Advisor's Pricing
Committee may use last-obtained market-based data to assist it
when valuing portfolio securities using amortized cost.
Common stocks and other securities listed on any national or foreign
exchange (excluding The Nasdaq Stock Market, LLC ("Nasdaq") and the London
Stock Exchange Alternative Investment Market ("AIM")) are valued at the
last sale price on the exchange on which they are principally traded or,
for Nasdaq and AIM securities, the official closing price. Securities
traded on more than one securities exchange are valued at the last sale
price or official closing price, as applicable, at the close of the
securities exchange representing the principal market for such securities.
Securities traded in an over-the-counter market are fair valued at the
mean of their most recent bid and asked price, if available, and otherwise
at their closing bid price.
NOTES TO PORTFOLIO OF INVESTMENTS (Continued)
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
SEPTEMBER 30, 2016 (UNAUDITED)
Forward foreign currency contracts are valued at the current day's
interpolated foreign exchange rate, as calculated using the current day's
spot rate, and the thirty, sixty, ninety and one-hundred eighty day
forward rates provided by a third-party pricing service.
Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Fund's Board of Trustees or its
delegate, the Advisor's Pricing Committee, at fair value. These securities
generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of
1933, as amended) for which a pricing service is unable to provide a market
price; securities whose trading has been formally suspended; a security whose
market or fair value price is not available from a pre-established pricing
source; a security with respect to which an event has occurred that is likely to
materially affect the value of the security after the market has closed but
before the calculation of a Fund's NAV or make it difficult or impossible to
obtain a reliable market quotation; and a security whose price, as provided by
the pricing service, does not reflect the security's fair value. As a general
principle, the current fair value of a security would appear to be the amount
which the owner might reasonably expect to receive for the security upon its
current sale. When fair value prices are used, generally they will differ from
market quotations or official closing prices on the applicable exchanges. A
variety of factors may be considered in determining the fair value of such
securities, including, but not limited to, the following:
1) the fundamental business data relating to the issuer, or economic
data relating to the country of issue;
2) an evaluation of the forces which influence the market in which
these securities are purchased and sold;
3) the type, size and cost of security;
4) the financial statements of the issuer, or the financial condition
of the country of issue;
5) the credit quality and cash flow of the issuer, or country of issue,
based on the Sub-Advisor's or external analysis;
6) the information as to any transactions in or offers for the
security;
7) the price and extent of public trading in similar securities (or
equity securities) of the issuer/borrower, or comparable companies;
8) the coupon payments;
9) the quality, value and salability of collateral, if any, securing
the security;
10) the business prospects of the issuer, including any ability to
obtain money or resources from a parent or affiliate and an
assessment of the issuer's management (for corporate debt only);
11) the economic, political and social prospects/developments of the
country of issue and the assessment of the country's governmental
leaders/officials (for sovereign debt only);
12) the prospects for the issuer's industry, and multiples (of earnings
and/or cash flows) being paid for similar businesses in that
industry (for corporate debt only); and
13) other relevant factors.
Fair valuation of an equity security will be based on the consideration of all
available information, including, but not limited to, the following:
1) the type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
5) price quotes from dealers and/or pricing services;
6) relationships among various securities;
7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;
8) an analysis of the issuer's financial statements; and
9) the existence of merger proposals or tender offers that might affect
the value of the security.
If the equity security in question is a foreign security, the following
additional information may be considered:
1) the value of similar foreign securities traded on other foreign
markets;
2) ADR trading of similar securities;
3) closed-end fund trading of similar securities;
4) foreign currency exchange activity;
5) the trading prices of financial products that are tied to baskets of
foreign securities;
6) factors relating to the event that precipitated the pricing problem;
7) whether the event is likely to recur; and
8) whether the effects of the event are isolated or whether they affect
entire markets, countries or regions.
NOTES TO PORTFOLIO OF INVESTMENTS (Continued)
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
SEPTEMBER 30, 2016 (UNAUDITED)
Because foreign markets may be open on different days than the days during which
investors may transact in the shares of the Fund, the value of the Fund's
securities may change on the days when investors are not able to transact in the
shares of the Fund. The value of securities denominated in foreign currencies is
converted into U.S. dollars using exchange rates determined daily as of the
close of regular trading on the NYSE.
The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.
The inputs or methodologies used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value the Fund's investments as of September 30, 2016, is
included with the Fund's Portfolio of Investments.
B. SECURITIES TRANSACTIONS
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Securities purchased on a when-issued, delayed-delivery or forward purchase
commitment basis may have extended settlement periods. The value of the security
so purchased is subject to market fluctuations during this period. The Fund
maintains liquid assets with a current value at least equal to the amount of its
when-issued, delayed-delivery or forward purchase commitments until payment is
made. At September 30, 2016, the Fund had no when-issued, delayed-delivery or
forward purchase commitments.
C. FORWARD FOREIGN CURRENCY CONTRACTS
The Fund is subject to foreign currency risk in the normal course of pursuing
its investment objectives. Forward foreign currency contracts are agreements
between two parties ("Counterparties") to exchange one currency for another at a
future date and at a specified price. The Fund uses forward foreign currency
contracts to facilitate transactions in foreign securities and to manage the
Fund's foreign currency exposure. These contracts are valued daily, and the
Fund's net equity therein, representing unrealized gain or loss on the contracts
as measured by the difference between the forward foreign exchange rates at the
dates of entry into the contracts and the forward rates at the reporting date,
is included on the Forward Foreign Currency Contracts table in the Portfolio of
Investments. Risks arise from the possible inability of counterparties to meet
the terms of their contracts and from movement in currency and securities values
and interest rates. Due to the risks, the Fund could incur losses in excess of
the net unrealized value shown on the Forward Foreign Currency Contracts table
in the Portfolio of Investments. In the event of default by the Counterparty,
the Fund will provide notice to the Counterparty of the Fund's intent to convert
the currency held by the Fund into the currency that the Counterparty agreed to
exchange with the Fund. If a Counterparty becomes bankrupt or otherwise fails to
perform its obligations due to financial difficulties, the Fund may experience
significant delays in obtaining any recovery in a bankruptcy or other
reorganization proceeding. The Fund may obtain only limited recovery or may
obtain no recovery in such circumstances.
D. FOREIGN CURRENCY
The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investments and items of income and expense are
translated on the respective dates of such transactions. Net realized foreign
NOTES TO PORTFOLIO OF INVESTMENTS (Continued)
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND (FEO)
SEPTEMBER 30, 2016 (UNAUDITED)
currency gains and losses include the effect of changes in exchange rates
between trade date and settlement date on investment security transactions,
foreign currency transactions and interest and dividends received.
E. RESTRICTED SECURITIES
The Fund invests in restricted securities, which are securities that may not be
offered for public sale without first being registered under the 1933 Act. Prior
to registration, restricted securities may only be resold in transactions exempt
from registration under Rule 144A under the 1933 Act, normally to qualified
institutional buyers. As of September 30, 2016, the Fund held restricted
securities as shown in the following table that Aberdeen Asset Management Inc.
has deemed illiquid pursuant to procedures adopted by the Fund's Board of
Trustees. Although market instability can result in periods of increased overall
market illiquidity, liquidity for each security is determined based on
security-specific factors and assumptions, which require subjective judgment.
The Fund does not have the right to demand that such securities be registered.
These securities are valued according to the valuation procedures as stated in
the Portfolio Valuation note (Note 2A) and are not expressed as a discount to
the carrying value of a comparable unrestricted security. There are no
unrestricted securities with the same maturity date and yield for these issuers.
% OF
ACQUISITION CURRENT CARRYING NET
SECURITY DATE PAR AMOUNT PRICE COST VALUE ASSETS
---------------------------------------------- -------------- ------------- ------------- ------------- ------------ --------
OAS Finance Ltd, 8.88% 4/18/2013 350,000 5.00 $ 350,000 $ 17,500 0.02%
OAS Investments GmbH, 8.25%, 10/19/19 10/15/2012 200,000 5.50 200,000 11,000 0.01
------------- ------------ --------
$ 550,000 $ 28,500 0.03%
------------- ------------ --------
3. DERIVATIVES TRANSACTIONS
For the fiscal year-to-date period (January 1, 2016 through September 30, 2016),
notional values of forward foreign currency contracts opened and closed were
$61,280,769 and $50,497,817, respectively.
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing
date of the report that includes the disclosure required by this
paragraph, based on their evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as
amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) First Trust/Aberdeen Emerging Opportunity Fund
---------------------------------------------------------
By (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas, President and
Chief Executive Officer
(principal executive officer)
Date: November 21, 2016
-----------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas, President and
Chief Executive Officer
(principal executive officer)
Date: November 21, 2016
-----------------
By (Signature and Title)* /s/ Donald P. Swade
----------------------------------------
Donald P. Swade, Treasurer,
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date: November 21, 2016
-----------------
* Print the name and title of each signing officer under his or her signature.
CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF
THE SARBANES-OXLEY ACT
I, James M. Dykas, certify that:
1. I have reviewed this report on Form N-Q of First Trust/Aberdeen Emerging
Opportunity Fund;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the
registrant as of the end of the fiscal quarter for which the report is
filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and
internal control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the
period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report, based
on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the
registrant's most recent fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal control over financial reporting.
Date: November 21, 2016 /s/ James M. Dykas
----------------- ----------------------------------------
James M. Dykas, President and
Chief Executive Officer
(principal executive officer)
CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF
THE SARBANES-OXLEY ACT
I, Donald P. Swade, certify that:
1. I have reviewed this report on Form N-Q of First Trust/Aberdeen Emerging
Opportunity Fund;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the
registrant as of the end of the fiscal quarter for which the report is
filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and
internal control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the
period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report, based
on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the
registrant's most recent fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal control over financial reporting.
Date: November 21, 2016 /s/ Donald P. Swade
----------------- ----------------------------------------
Donald P. Swade, Treasurer,
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
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